You are the new owner of Drespie Corn Products and Refineries. You are interested in your company’s cost and revenue relationships as well as its future pricing strategies. Accordingly, you have developed the following relationships, which you believe to be accurate on the basis of historical data:
P = $50 – $0.005Q
TC = $73,500 + $6Q + $0.0006Q2
MR = $50 – $0.01Q
MC = $6 – $0.0012Q
where P is the price, Q the quantity, TC the total cost, MC the marginal cost, and MR the marginal revenue.
MR = $50 – $0.01Q = 0
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